LG Household & Health Care Reports 3Q Operating Profit of 190.1 Billion KRW, Down 44.5% YoY (Update)

[Asia Economy Reporter Moon Hyewon] LG Household & Health Care announced on the 27th that its sales in the third quarter of this year recorded 1.8703 trillion KRW, a 7.0% decrease compared to the same period last year. Operating profit for the same period fell 44.5% to 190.1 billion KRW.

According to LG Household & Health Care, the lockdown policy in China that began earlier this year continued into the third quarter, leading to an overall economic downturn in China. Additionally, rising raw material prices and exchange rate impacts caused by the Ukraine-Russia war increased cost burdens, further worsening the business environment.

Sales in the beauty (cosmetics) business for the third quarter decreased by 23.1% year-on-year to 789.2 billion KRW, and operating profit dropped 68.6% to 67.6 billion KRW.

The third quarter is an off-season for cosmetics, and intermittent lockdowns in the Chinese market further contracted consumption, making growth difficult in both China and duty-free channels, LG Household & Health Care explained. In China, lockdowns delayed the normalization of offline store operations, and strengthened government sanctions on top influencers also impacted online sales.

However, sales of luxury brands such as ‘O Hui’ and ‘CNP’ increased by 22% and 2%, respectively.

Sales in the HD-B (Home & Daily Beauty) business for the third quarter grew 8.8% year-on-year to 587.3 billion KRW, while operating profit decreased 11.8% to 56.1 billion KRW.

Sales in the Refreshment (beverage) business for the third quarter increased 11.3% year-on-year to 493.9 billion KRW, and operating profit rose 4.9% to 66.3 billion KRW. Brands such as ‘Coca-Cola’, ‘Sprite’, and ‘Monster Energy’ continued to grow, and despite cost burdens from rising raw material prices, efficient operations led to increased operating profit. New products launched in the first half of this year, such as ‘Powerade Protein’ and ‘Toreta THE Lacto’, which enhance nutritional content, received strong responses and contributed to sales growth.

This content was produced with the assistance of AI translation services.